ZVEI calls for strengthening of fiber optic cable production in Germany

The digital and electronics association ZVEI is concerned about Europe's much-vaunted digital sovereignty regarding fiber optic cables. The production volume of optical cables in Germany has decreased by over 43% between 2014 and 2024, the association warns. More than 60 percent of all fiber optic cables used globally are now produced in China. Europe now only accounts for around 15 percent of global production.

Avoiding dependencies

To avoid long-term strategic dependencies in this sector, the ZVEI calls for the maintenance and expansion of industrial capacities for network components in Germany and Europe in a position paper on the resilience of digital infrastructures. The EU Commission must carefully monitor developments on the market and take trade policy measures if necessary, emphasizes the association's Managing Director Sarah Bäumchen. A strong industrial base is crucial for the resilience of communication networks: "We must not relinquish our technological leadership and thus a bargaining chip."

According to the analysis, the current production capacities for fiber optic cables in Europe are still sufficient "to be self-sufficient in purely mathematical terms". Europe has an annual demand of around 60 million fiber kilometers, and European manufacturers' production is up to 70 million. In view of geopolitical developments and growing security requirements, however, such cable material must not only be operated reliably, "but also come from safe and sustainable production processes in order to guarantee the stability of supply chains".

Great demand for submarine cables and in the fixed network

The Commission has already identified dumping and subsidy practices by Chinese importers of fiber optic cables in 2021 and imposed corresponding punitive tariffs, praises the ZVEI. The Brussels government institution is also closely monitoring imports from India and has already reacted here too. However, when it comes to the installation of fiber optic cables, mandatory minimum quotas for local manufacturers, for example, could help to "promote investment in Europe and strengthen the resilience of producers in Europe".

According to the association, submarine cables are of particular strategic importance. Here in particular, the focus should be on the safety and availability of the required components. Technological development in Europe should be specifically promoted here. In the fixed network, too, the demand for fiber optics in Germany remains high considering the still comparatively low coverage. However, German and European producers have to comply with many requirements such as sustainability reporting obligations and environmental regulations, which puts them at a disadvantage compared to international competitors.

(mma)